West Palm Beach PPP Loan Fraud Lawyer

Trusted West Palm Beach PPP Loan Fraud Attorney

If you’ve been accused of illegally obtaining Paycheck Protection Program (PPP) funds, a West Palm Beach PPP loan fraud lawyer can explain the allegations, potential consequences, and the federal criminal process. Federal law enforcement continues to investigate PPP loans years after the program began. Since PPP loan accusations are generally prosecuted in federal court, it is important to understand the laws that may apply to your case.

About The Kirlew Law Firm 

The Kirlew Law Firm defends individuals across Florida who are facing federal criminal investigations and charges. Our criminal defense lawyers have handled thousands of cases involving fraud allegations, financial crimes, and federal offenses. If you’re located in West Palm Beach or nearby, you may benefit from a law firm with extensive criminal trial experience and knowledge of federal criminal justice in the Southern District of Florida.

Understanding PPP Loan Fraud Cases

Under the PPP and Economic Injury Disaster Loan Program, the Small Business Administration disbursed more than $1 trillion. Over $200 billion is thought to have been involved in possibly fraudulent lending.

Created in response to the COVID-19 pandemic, the PPP offered federally backed small business loans to qualifying businesses. The loans were intended to cover payroll expenses and other eligible business costs. Billions of dollars were disbursed to eligible applicants; many of these loans were forgiven after the funds were spent.

Federal law enforcement agencies are still investigating applications and PPP loan forgiveness requests. Accusations are often based on seemingly suspicious or inconsistent information discovered. Common accusations in PPP loan fraud include a person:

• Providing false information about their payroll costs or business operations
• Spending loan proceeds on ineligible expenses
• Fraudulently creating a business or employee
• Altering tax documents/filings or financial statements
• Applying for more than one loan through separate providers

Not all inaccuracies are intentional. Some PPP investigations involve clerical mistakes, misinterpretations of changing program guidelines, or claims made by a consultant who worked on the loan application.

PPP Loan Fraud Penalties

Penalties for PPP loan fraud are based on each defendant’s individual facts, including the total money involved, criminal history, and charges they’re facing. Sentences for PPP loan fraud can include prison time, supervised release, restitution, forfeiture, and fines. Judges also often order defendants to pay back the funds prosecutors say were stolen or misused.

Federal sentencing guidelines provide judges with a recommended sentence based on several factors, including:

• The amount of money involved in the loss
• The alleged number of victims
• The level of sophistication required for the offense
• Obstruction of justice
• Acceptance of responsibility

Federal prosecutors often request that judges issue enhanced penalties for defendants who are accused of applying for large loans, submitting multiple applications, or hiding the transactions from authorities. Understanding white-collar crime penalties in Florida gives business owners a clearer picture of what’s at stake.

Why Hire a PPP Loan Fraud Lawyer?

Many people may choose to hire a PPP loan fraud lawyer when they are under investigation. An attorney can go through banking records, PPP loan applications, payroll records, and other communications to see if the evidence actually proves the allegations against you. Additionally, your legal representative can file motions to suppress evidence obtained in violation of your rights. They can analyze the investigation and point out any errors made by the prosecution. 

Attorneys guide their clients through the federal court process. If your case involves complex financial transactions, a West Palm Beach PPP loan fraud attorney can see that these financial records are interpreted correctly.

Local Considerations

West Palm Beach has a wide variety of small businesses, including medical practices, contractors, hospitality industry businesses, consultants, and professional services, so it is likely that many of them applied for PPP loans. 

Business owners in West Palm Beach have been dealing with these same allegations and the stress they bring. If you operate or operated a business anywhere in Palm Beach County, the FBI and IRS may be looking at your records. This includes businesses near Downtown West Palm Beach, Palm Beach Lakes Blvd., and Northlake Blvd., along with communities along Interstate 95 and Florida’s Turnpike. 

Most PPP prosecutions for West Palm Beach are prosecuted in the Southern District of Florida at the Paul G. Rogers Federal Building and U.S. Courthouse, located at 701 Clematis Street, West Palm Beach, FL 33401. Knowing what to expect in South Florida federal court can help business owners prepare for what lies ahead.

Federal criminal investigators can continue looking into alleged fraud years after the money was disbursed. If your business received a PPP loan that was forgiven or closed out, you could still be investigated.

FAQs

Does Repaying a PPP Loan Prevent Criminal Charges?

Loan repayment does not automatically stop criminal investigators or prosecutors from moving forward. Repayment of a PPP loan is just one factor prosecutors and investigators may look at. It does not typically eliminate the fact that false information was provided on a PPP application or forgiveness package. 

Prosecutors usually assess the facts of how the PPP loan was acquired, what information was included, and whether the money was repaid before or after an investigation started.

Can Someone Be Investigated If a Loan Was Approved by a Lender?

Yes, someone can be investigated, even if the loan was approved by a lender. Just because your application is approved, it doesn’t mean it won’t face future investigation. Many lenders accepted the borrower’s word during the PPP application process. 

Federal agencies reserve the right to revisit your application(s) and cross-reference them with payroll records, tax documents, and bank statements. If there are discrepancies, they may be investigated, even if your loan was approved.

Can Business Partners Both Be Charged With PPP Loan Fraud?

Yes. The government can bring charges against different defendants arising out of the same business if they believe that there was more than one wrongdoer. The government might look at business ownership, who made the decisions, what was said, and who helped put the application together. In most cases, the government may assess each individual’s culpability independently.

Can PPP Loan Fraud Involve Businesses That Are No Longer Operating?

Yes. Investigators can look into a company that is no longer operating. Federal investigators may subpoena records from businesses that have closed, dissolved, or otherwise shut down following the receipt of PPP funds. Generally, they may examine records produced around the time of the application period and the use of funds after dispersal.

Contact The Kirlew Law Firm 

If you have been accused of PPP loan fraud, The Kirlew Law Firm can mount a strong defense. Contact us today for a consultation.